The yield premium for Indonesia’s dollar-denominated Islamic bonds over Malaysia’s dropped by the most in a year this month as falling oil prices eased the burden on the budget and made room for economic stimulus.
The spread between Indonesia’s 8.8 percent Islamic debt due April 2014 and Malaysia’s 3.928 percent note due June 2015 narrowed 33 basis points in June to 56 basis points. The yield on the Indonesian securities fell 42 basis points, while the Malaysian rate declined five basis points...............................................Full Article: Source